Aluminium scrap

Selecting the right grade is critical for smelting efficiency. Buyers should categorize scrap based on the ISRI (Institute of Scrap Recycling Industries) codes. For example, 'Tense' (Mixed Aluminium Castings) and 'Taint/Tabor' (Clean Mixed Old Alloy Sheet) are common in B2B trades. Ensure the purity level is at least 97-99% for high-grade recovery. You must request a Chemical Composition Analysis (Spectroscopy report) to verify the presence of magnesium, silicon, and iron, as high impurity levels significantly increase processing costs.

Cross-border trade of scrap metal is heavily regulated to prevent environmental hazards. Suppliers must provide a Pre-Shipment Inspection Certificate (PSIC) to ensure the cargo is free from radioactive materials and explosives. For specific markets like China, compliance with GB/T 38471 (Recycled Aluminium Ingots/Scrap) is mandatory. Ensure the supplier is registered with AQSIQ (if applicable) and provides a Certificate of Origin and a Clean Report of Findings from third-party agencies like SGS or CCIC.

The primary factor is the Recovery Yield (Metal Recovery Rate). High-quality scrap should offer a yield of 90% or higher after smelting. Buyers should also consider the form of the scrap (e.g., briquetted, loose, or baled); briquetted scrap reduces oxidation during melting and optimizes container space, leading to lower logistics costs per ton. Always factor in the LME (London Metal Exchange) aluminum price index as a baseline for negotiating the 'discount' rate applied to scrap.

The most significant risk is quality substitution or weight fraud (e.g., loading heavy waste or moisture to increase weight). To mitigate this, never pay 100% upfront. Use Letters of Credit (L/C) or Escrow services where payment is released only after a third-party weight and quality inspection at the loading port. For new suppliers on Made-in-China.com, prioritize Audited Suppliers who have undergone rigorous on-site verification.

Pricing is typically quoted as a percentage of the LME Aluminum cash price (e.g., 85% of LME). Negotiate based on volume consistency; suppliers prefer 'contract buyers' over spot buyers and may offer a 2-5% discount for long-term off-take agreements. Ensure the Incoterms are clearly defined—CIF (Cost, Insurance, and Freight) is common, but FOB (Free On Board) allows the buyer better control over shipping schedules and costs.

Scrap metal is heavy and can damage standard containers. Ensure the supplier uses heavy-duty containers and proper seaworthy packaging (baled and strapped) to prevent shifting. Be aware of International Maritime Organization (IMO) regulations regarding non-hazardous waste. For shipping to specific regions, verify if the destination port has specialized unloading equipment for bulk scrap to avoid demurrage charges, which can erode your profit margins quickly.